Universal Display Corp. (OLED)
NASDAQ:OLED
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Universal Display
(NASDAQ:OLED)
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Rating:74Outperform
Price Target:
$108.00
▲(8.49% Upside)
Action:Reiterated
Date:05/02/26
OLED scores well on financial strength and profitability, led by high margins, strong cash generation, and a debt-free balance sheet. The score is held back by weaker technical trend (well below 100/200-day averages) and a premium valuation (P/E ~30) amid a mixed near-term outlook highlighted by the revenue guidance cut and year-over-year declines in Q1.
Positive Factors
High margins & profitability
Sustained very high gross and net margins reflect durable pricing power from proprietary OLED emitter materials and licensing. Margins support internal R&D, dividend and buybacks, and provide buffer through semiconductor cycles, enabling long-term reinvestment and shareholder returns.
Negative Factors
Inconsistent revenue growth
Top-line has shown variability and modest decline, reflecting lumpy customer ramps and cyclical end-market demand. Inconsistent revenue constrains predictable long-term earnings growth and makes forecasting capex-linked material sales and royalty streams more difficult for planning.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Sustained very high gross and net margins reflect durable pricing power from proprietary OLED emitter materials and licensing. Margins support internal R&D, dividend and buybacks, and provide buffer through semiconductor cycles, enabling long-term reinvestment and shareholder returns.
Read all positive factors
Universal Display Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
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The Fly
The FlyUniversal Display (OLED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.33B
Dividend Yield1.52%
Average Volume (3M)996.15K
Price to Earnings (P/E)30.1
Beta (1Y)1.54
Revenue Growth-3.42%
EPS Growth-6.78%
CountryUS
Employees468
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.49
Shares Outstanding46,750,893
10 Day Avg. Volume1,171,844
30 Day Avg. Volume996,155
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)3.15
Price to Sales (P/S)8.53
P/FCF Ratio35.97
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue6.45
Enterprise Value/Gross Profit8.89
Enterprise Value/Ebitda14.84
Forecast
1Y Price Target
$130.60Price Target Upside31.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.23
Revenue Forecast (FY)$644.69M
Universal Display Business Overview & Revenue Model
Company Description
Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. It owns, exclusively licenses, or...
How the Company Makes Money
Universal Display primarily makes money through two major revenue streams: (1) licensing and royalty revenue tied to its OLED intellectual property, and (2) sales of OLED materials. Licensing/royalties: The company licenses its OLED and PHOLED pat...
Universal Display Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presents a mixed near-term picture but retains a positive long-term outlook. Near-term results and guidance reflect meaningful headwinds: revenue declined 14% year-over-year, royalties fell ~27%, operating margin compressed from ~42% to ~30%, and net income dropped ~44%. However, the company maintains a strong balance sheet (~$911M cash), healthy operating cash flow ($109M in Q1), ongoing shareholder returns (new $400M buyback and dividend), clear R&D momentum (AI-driven material discovery and progress on phosphorescent blue with potential ~25% energy-efficiency gains), and continued customer partnerships and industry capacity expansion that support a multiyear growth thesis. On balance, near-term challenges weigh heavily on the quarter, but financial strength and technology leadership underpin confidence in recovery and long-term opportunity.Positive Updates
Strong cash position and cash generation
Ended Q1 with approximately $911 million in cash and investments and generated $109 million of operating cash flow in the quarter, supporting balance sheet flexibility.
Negative Updates
Revenue decline year-over-year
Q1 2026 revenue was $142 million, down 14% versus $166 million in Q1 2025, driven by customer mix, tariff-related prior-year purchasing, and softer macro demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong cash position and cash generation
Ended Q1 with approximately $911 million in cash and investments and generated $109 million of operating cash flow in the quarter, supporting balance sheet flexibility.
Read all positive updates
Company Guidance
Management revised 2026 revenue guidance to $630–$670 million (down from $650–$700M), expects Q2 revenue to be sequentially higher than Q1 (Q1 revenue was $142M) and the second half to be stronger than the first; full‑year gross margin guidance remains 74–76% (Q1 was 75%) and the full‑year effective tax rate is expected to be ~20% (Q1 was 21%). They noted Q1 material volumes were down ~4% YoY, materials sales $84M (green/yellow $64M, red $20M), royalties/licenses $54M, Adesis $4.3M, operating income $43M (≈30% margin), net income $36M ($0.76 diluted), operating cash flow $109M, and cash & investments of ~$911M at quarter end. Other metrics/guidance: materials-to-royalties ratio expected closer to 1.3:1 for the year (Q1 ~1.5:1), industry square‑meter growth now projected ~2% (vs prior mid‑single digits), OpEx trending toward mid‑single‑digit growth, they expect ~mid‑to‑high‑40% of revenues in H1 with the balance in H2, completed $100M repurchase (≈924k shares), repurchased ~633k shares for $66M in Q1, authorized a new $400M repurchase program, and declared a $0.50/share Q2 dividend.Universal Display Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 626.54M | 650.61M | 647.68M | 576.43M | 616.62M | 553.52M |
| Gross Profit | 454.70M | 477.78M | 499.22M | 441.05M | 488.72M | 438.53M |
| EBITDA | 272.34M | 297.37M | 282.94M | 260.59M | 309.38M | 269.61M |
| Net Income | 213.53M | 242.07M | 222.08M | 203.01M | 210.06M | 184.21M |
Balance Sheet | ||||||
| Total Assets | 1.89B | 1.97B | 1.83B | 1.67B | 1.53B | 1.47B |
| Cash, Cash Equivalents and Short-Term Investments | 516.41M | 602.36M | 492.67M | 514.12M | 577.77M | 663.19M |
| Total Debt | 22.11M | 43.19M | 19.14M | 22.86M | 29.04M | 27.26M |
| Total Liabilities | 190.74M | 211.84M | 215.81M | 221.74M | 257.45M | 367.00M |
| Stockholders Equity | 1.70B | 1.76B | 1.62B | 1.45B | 1.28B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 237.13M | 154.36M | 211.10M | 28.42M | 79.61M | 147.55M |
| Operating Cash Flow | 289.14M | 210.83M | 253.74M | 154.78M | 126.81M | 191.10M |
| Investing Cash Flow | -93.78M | -45.48M | -164.41M | -83.29M | -280.74M | -457.75M |
| Financing Cash Flow | -193.49M | -125.98M | -82.33M | -72.93M | -64.64M | -51.37M |
Universal Display Technical Analysis
Negative
99.55
Price Trends
94.49
Negative
105.41
Negative
119.67
Negative
Market Momentum
-1.46
Positive
40.91
Neutral
17.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Negative. The current price of 99.55 is above the 20-day moving average (MA) of 93.81, above the 50-day MA of 94.49, and below the 200-day MA of 119.67, indicating a bearish trend. The MACD of -1.46 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 17.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLED.
Universal Display Risk Analysis
Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.74B | 38.82 | 17.44% | ― | 19.12% | 10.38% | |
76 Outperform | $4.08B | 215.30 | 2.44% | 2.27% | 3.11% | -54.05% | |
75 Outperform | $16.46B | 148.97 | 2.79% | ― | 17.45% | -61.07% | |
74 Outperform | $4.33B | 30.05 | 12.33% | 1.52% | -3.42% | -6.78% | |
74 Outperform | $7.99B | -374.67 | -1.57% | ― | 22.77% | 79.17% | |
64 Neutral | $12.82B | -63.06 | -7.22% | ― | 15.48% | 82.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
OLED
Universal Display
89.40
-60.51
-40.36%
LSCC
Lattice Semiconductor
123.15
72.69
144.05%
POWI
Power Integrations
67.62
16.05
31.12%
RMBS
Rambus
123.76
67.95
121.75%
SMTC
Semtech
132.39
92.25
229.82%
ALGM
Allegro MicroSystems
41.35
14.23
52.47%
Universal Display Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Universal Display Cuts Outlook Amid Weaker Q1 Results
Negative
Apr 30, 2026
On April 30, 2026, Universal Display reported first-quarter 2026 results showing a year-on-year decline in performance as softer demand and an unfavorable customer mix weighed on revenue and profits. Total revenue fell to $142.2 million from $166....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.